China’s May gold purchases hit 48 tonnes, highest in over a year

China’s recent surge in gold purchases, particularly through the London OTC market, has caught the attention of global markets. In May 2026, the People’s Bank of China (PBoC) acquired approximately 48 tonnes of gold, marking the highest monthly volume in more than a year. This move extends China’s streak of increasing its gold reserves to 20 consecutive months, with significant official purchases reported in both May and June. The PBoC’s strategy appears to reflect a broader effort to bolster its reserves, which reached approximately 2,347 tonnes by the end of June, accounting for 8.9% of its foreign exchange reserves.

The market impact of China’s gold acquisitions is being closely monitored, particularly in relation to future price movements. Current market pricing, as evidenced by prediction markets, suggests an uptick in expectations for gold prices, yet remains cautious. The probability of gold reaching $15,000 by the end of December 2026 remains low, with markets assigning a mere 2% chance, reflecting skepticism despite China’s aggressive purchasing behavior.

Key Takeaways

• China’s significant gold purchases in May 2026, totaling 48 tonnes, suggest a continued strategic accumulation by the PBoC.
• Market pricing implies a modest increase in the likelihood of higher gold prices, though overall expectations for reaching $15,000 by year-end remain low.
• The extended streak of monthly gold purchases by China appears consistent with efforts to diversify and strengthen its foreign exchange reserves.

What to Watch

Observers should monitor further announcements from the PBoC regarding gold purchases, as any indication of continued or increased acquisition could influence market sentiment. Additionally, geopolitical developments, particularly in regions like the Middle East or involving U.S.-China relations, could prompt market participants to re-evaluate gold as a safe-haven asset. The Federal Reserve’s monetary policy decisions, especially any changes in interest rates, will also be critical in shaping future gold price expectations.

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Disclosure: This article was edited by Estefano Gomez. For more information on how we create and review content, see our Editorial Policy.